Which of the following events would unambiguously cause a decrease in the equilibrium price of cotton shirts?
a. an increase in the price of wool shirts and a decrease in the price of raw cotton
b. a decrease in the price of wool shirts and a decrease in the price of raw cotton
c. an increase in the price of wool shirts and an increase in the price of raw cotton
d. a decrease in the price of wool shirts and an increase in the price of raw cotton
b
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Cheap labor is the source of comparative advantages
a. True b. False Indicate whether the statement is true or false
secure property rights promote economic progress because they
What will be an ideal response?
The price of soybeans is $17 a bushel. To maximize profits, a competitive firm selling soybeans must
a. produce soybeans up to the point at which average variable cost equals $17. b. adjust production until the marginal cost of soybeans is $17. c. produce all the soybeans it can. d. produce soybeans up to the point at which fixed costs are minimized and variable costs are increasing.
One In the News article says that when JetBlue "…comes to town, fares go down …" If entry barriers are low enough, a market
A. Is contestable. B. Requires regulation. C. Violates antitrust laws. D. Is inefficient.